Finance stocks drag down Asian markets; Banks and mining stocks suffer in Australia
City Index January 10, 2011 8:28 PM
<p>The Hong Kong market was trading 31points or 0.13% lower at mid day with energy stocks rising while financial stocks dragging the index down. CNOOC, […]</p>
The Hong Kong market was trading 31points or 0.13% lower at mid day with energy stocks rising while financial stocks dragging the index down.
CNOOC, China’s offshore oil producer jumped over 2% to HKD 18.76 after the oil price rebound. Property stocks were also in focus after a report showed a rise in property prices and increased sales transactions in local market.
Hutchison Whampoa and Cheung Kong, local property developers, gained 1.76% and 0.93% to HKD89.50 and HKD130.60 respectively. The financial sector was trading lower with HSBC, BOC Hongkong and Pingan Insurance Corporation all falling on the day.
The Singapore stock market was little changed in the early trading session, dropping only 3 points to 3257.93.
Wilmar International rebounded 0.7% today after touching its 52-week low last week. OCBC Investment Research raised its recommendation to buy and maintain the estimated price at SGD6.48. Wilmar was last trading at SGD5.74.
Comfortdelgro, the biggest local taxi and bus operator in Singapore gained 3.14% after investment bank BNP Paribas upgraded its rating on the company.
In Australia, the local market continued to be dragged down on its second week of trading in 2011.
The banks and mining stocks are the major weights pulling the market down today. The closure of two US banks last week seem to have a trickle effect and we saw the four major banks losing ground today. Most of the banks and financial stocks were down in the US last week and this has also pulled down the local banking stocks.
Mining companies, led by BHP and Rio and the coal miners were also down due to the impact of flooding in Queensland. The coal miners are the most heavily affected and without much progress in terms of rebuilding (the infrastructure) or resumption of production and transportation of coal from those affected areas, we may see the coal mining companies remaining under pressure.
I believe there is a certain degree of hesitation (among investors) at this stage. It is still very early in the year and we’re not seeing the usual or normal level of trading volume yet. It may take another week or two before we get back to the normal trading volume.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.